PRESENTATION ON THE CHIETA CONFLICT OF INTEREST POLICY TO THE CHIETA REGIONAL STAKEHOLDER FORUMS IN OCTOBER 2017

OUTLINE OF PRESENTATION CONTEXT AND INTRODUCTION SCOPE AND APPLICABILITY – AFFECTED PARTY DEFINITION CONFLICT OF INTEREST DEFINED MANAGEMENT OF CONFLICT OF INTEREST GIFTS AND ENTERTAINMENT IMPLEMENTATION QUESTIONS, ANSWERS AND CLARITY

CONTEXT AND INTRODUCTION CHIETA Governing Board approved an updated CHIETA Policy on Conflict of Interest CHIETA is committed to execute its mandate in such a manner that judgement and business decisions are not influenced by undue direct or indirect personal interest Board adopted the principle that Conflict of Interest SHOULD FIRSTLY BE AVOIDED, if not it should be managed and disclosed in a specified manner Board approved Policy provides guidance on the process in managing and governing existing and potentail conflict of Interest It is an Integrated Policy that links to relevant sections of the PFMA, Treasury Regulations, Companies Act, KING IV and the CHIETA Code of Conduct as per the CHIETA Constitution

SCOPE AND APPLICABILITY Policy applies to all affected parties without exception namely the CHIETA Board, Board Committee members, CHIETA Stakeholders and with specific reference to stakeholder representatives functioning within CHIETA’s Constitutional or Board approved structures e.g. the Chambers, and various task teams, functional committees and to CHIETA Management and employees

CONFLICT OF INTEREST DEFINED A conflict of interest is deemed to exist if there is conflict with the CHIETA interest, if it influences, has the potential to influence on, or could be perceived to influence an affected party’s performance of his/her duties and decision making processes in their respective roles and responsibilities at CHIETA Direct or Indirect conflict of Interest : Direct where affected party has a personal financial interest and indirect where someone related to an affected party such as an immediate family member or business associate has a personal financial interest Distinction between the rendering of a services versus the receiving a services Rendering of Goods and services is defined as services as they pertain to transactions governed under the CHIETA Supply Chain process Receiving of goods and services from the CHIETA for example Board members whose companies receive grants from CHIETA

MANAGEMENT OF CONFLICT OF INTEREST There are two separate routes for managing conflict of interest on rendering versus receiving of goods and services ROUTE ONE: RENDERING OF SERVICES BY AN AFFECTED PARTY TO CHIETA Must be disclosed within the CHIETA Disclosure System and Register to be managed accordingly Affected parties are prohibited from being directly or indirectly associated with any business entity that provides goods and services to CHIETA In cases of such a relationship existing, affected parties must either relinquish their positions in such entities or step down/resign from the CHIETA (Direct wording taken from the CHIETA Code of Conduct in the CHIETA Constitution)

MANAGEMENT OF CONFLICT OF INTEREST ROUTE TWO: RECEIVING OF SERVICE BY AN AFFECTED PARTY FROM CHIETA Any business interest or relationship that could represent a conflict of interest must be declared annually upfront in the CHIETA Disclosure System and Register Conflict of Interest must also be declared as soon as an affected party becomes aware of a conflict anytime within a specific financial year Disclosure of interest at each governance/management meeting to continue as per current Levels of Authority and approvals introduced that must be followed in all cases where the conflict cannot be avoided and where an affected party is of the opinion that the proposal is in the best interest of CHIETA Approval for person serving on stated stakeholder structures to be provided by the Governing Board via the Governance and Strategy Committee of the Governing Board

MANAGEMENT OF CONFLICT OF INTEREST ROUTE TWO: RECEIVING OF SERVICES BY AN AFFECTED PARTY CONTINUED: KEY APPROVAL CRITERIA THAT CHIETA BOARD WILL CONSIDER Was the conflict declared in the CHIETA Disclosure System? Can it be responsibly managed without prejudice to CHIETA? Not related to the provision of goods and services to CHIETA Treat applications in good faith and without bias Fairly evaluate the conflict of interest situation inclusive of organisational risks and reputation Consider the materiality framework of the business proposal Does the affected party have an unfair advantage or knowledge prior to submitting the business proposal? Will it withstand public scrutiny/media

MANAGEMENT OF CONFLICT OF INTEREST ROUTE TWO: RECEIVING OF SERVICES BY AN AFFECTED PARTY CONTINUED In considering above-mentioned criteria it will be in the sole discretion of the Governing Board Can ask the affected party to resign from their position if he/her want to pursue their business interest with CHIETA Decision is final and binding Clear communication to affected party to ensure that it is understood and complied with CHIETA to maintain proper records of the process followed, decisions made and reasons advanced

MANAGEMENT OF CONFLICT OF INTEREST GIFTS AND ENTERTAINMENT Detailed definition of gifts – means anything of value but not limited to discounts, loans,cash,prizes.favourable terms on products and services, vacation facilities, shares, home improvements, tickets, gifts certificates, sport events, spa treatments and golf days Affected Parties( including staff) must not provide or accept gifts that could or appear to influence their objectivity in carrying out their responsibilities in the best interst of CHIETA Receiving of gifts is not inherently unethical. CHIETA recognises that it can be reasonable and appropriate. Above-mentioned is quantified that affected parties may not receive gifts or entertainment to the value of more than R350 Gifts over R350 must be handed over to the Executive Governance and Risk and entertainment above R 350 should be refused All gifts need to be declared to the Governance office for capturing in the CHIETA Gifts Register

QUESTIONS, ANSWERS AND CLARITY THANK YOU